Product Liability for Co.s products & Public Liability as per Act.

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..... Dear Sir, Wish to know that that CENVAT credit of Service Tax is available on Product liability for Company and Public Liability for company product as per Act , is eligible or not. Please advise Regards Pradeep Jain - Reply By Madhukar N Hiregange - The Reply = Terms are not clear. My understanding is the insurance premium ST. If so then credit should be available .....

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..... . - Reply By Pradeep Khatri - The Reply = Dear Pradeep, Product liability and Public liability are known as offspring of 'Law of Torts' read with Consumer Protection Act,1986,Civil Laws, and also to some extent Criminal Laws . Such liability may occurs mainly due to following reasons, namely: - When a product does not fulfill the results as it claimed; When due to usage of such pr .....

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..... oduct, the customer suffers either physically or mentally or falls sick/ill; Selling knowingly/unknowingly expired products to customers which caused serious injury to them or having negative consequence to public at large; Selling defective products by claiming that are of high quality or of high standards ( Example: some car companies are nowadays recalling cars due to certain technical fau .....

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..... lts). Any amount paid on safeguarding the interest of companies by applying, implementing, adopting, managing or pursuing or defending any legal action/litigation for or against the company would be treated as having nexus with the production/manufacturing business and service tax would be treated as input services. Hence, such service taxes would be available for CENVAT credit. Regards YA .....

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..... GAY and SUN (Management, Business and Indirect Tax Consultants) - Product Liability for Co.s products & Public Liability as per Act. - Query Started By: - Pradeep Jain Dated:- 1-10-2014 Service Tax - Got 2 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.c .....

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..... om - TMI - TaxTMI - TMITax .....

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